At least one definition of a “smart grid” describes a “smart grid” as a method for delivering electricity from suppliers to consumers using digital technology to control appliances at consumer's homes to save energy, reduce cost and increase reliability and transparency. Such a modernized electricity network is being promoted by many governments as a way of addressing energy independence, global warming and emergency resilience issues.
In one configuration, a “smart grid” operates by having devices that plug into an outlet, and in turn plugging appliances into this device. The device would then communicate and report to the electric companies at what time the appliance used energy and how much and use that to charge more for electricity used during peak hours of late afternoon and early evening. The electric company could offset that increase in price by giving discounts during the low demand hours (generally between midnight and 5 am).
One drawback of this approach is the cost of the device. Another drawback is that many appliances are not readily connected to such a device. Yet another drawback of this approach is that it fails to account for considerations other than the spot price of electricity. Yet another drawback is that many appliances, such as a hot water heater, operate independently using regulators, such as a thermostat. The present invention overcomes these and other drawbacks.